Why Have House Prices Been Increasing?

There is a substantial increase in house prices in Turkey, especially in Istanbul, Ankara, Izmir and Adana. Consequently, these high prices also increase the lease costs. While those who want to become a homeowner complain about the prices, homeowners are happy thanks to their ‘right investments’. What about the reason behind these high prices? The Central Bank has asked the same question and based on the research carried out, it is stated that quality is one of the most important factors which put the prices up.

Quality of the Houses Have Improved

Actually, the most crucial factor which determines the house prices is ‘incremental costs’ which may reach 20 %, yearly, and sometimes go beyond. Another reason is the fact that the houses are more quality compared to the ones which have been built in the past. That is to say, the buildings there is an elevator within, and smell luxury, are available everywhere now, while it was common only in luxury cities in the past. Contractors add lots of features which can make difference, ranging from led-light facade insulation to unique wardrobe, indoor marbled stairs and elevator. As a result, this unavoidably increases the cost.

Rush on Building Complexes

Constructions of building complexes which include all kinds of social activity have been in high demand lately. There are also some cost increaser factors such as outdoor swimming pool, indoor pool, ornament pool and leisure centre for such kind of constructions. When a complex is built in a district and if the prices are high in this complex, it automatically increases the prices of the houses around this complex. Or, those cheap houses are demolished and new ones are built with high prices.

Maybe the Most Important Reason: Lack of Land

There is no land which is appropriate for new constructions in big cities, anymore. Consequently, there is no land to build new houses, and the available ones are really expensive. This basically causes construction firms to put the prices up.